Good Morning All,
We have a busy day for economic data ahead with figures from the U.K and Europe dominating the calendar this morning.
We start with UK Consumer Prices at 9.30am with an increase expected. GBP/USD is perched around 1.2925 this morning with the market looking for something to break us from the mundane range we have been stuck in for the last week. It is unlikely that we see enough from the UK figures to breach the hallowed 1.30 mark, but as always with the currency market; ANYTHING CAN HAPPEN…
GBP/EUR has moved progressively lower over the last 24 hours with EUR/USD moving higher to reach a 6 month high above 1.10. Perhaps the Euro is enjoying a spell of ‘safe haven’ status… We still have a lack of appetite for Sterling as we approach the ‘snap election’ and BREXIT rumbles on. Across the Pond President Trump continues to be the maverick that he is which seems to be unsettling the Dollar. We could say that the euro appears to be benefitting from being the best of a bad bunch.
Following the UK data this morning we have Euro-Zone GDP and the ZEW survey from Germany. Figures are expected to be in line with previous so we do not expect any fireworks, but given the appetite currently being seen for the Euro, anything above forecast could see the Euro strengthen even more.
We have a fairly quiet day from the U.S today, but selling pressure remains on the Dollar as it weakens across the board.
Have a good day!